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HRMS

Salary, Loan & Payroll Management

Complete Nigerian payroll system with automatic loan deductions and statutory compliance. Updated for Nigeria Tax Act 2025

Nigeria Tax Act 2025 (Effective Jan 1, 2026)

This system now implements the new tax brackets: First ₦800,000 exempt, max rate 25%, and Rent Relief replacing CRA.

NTA 2025 Compliant
Pension Act 2014
NHF Compliant
NSITF Ready
ITF Compliant
GDPR Ready

Quick Navigation

System Status

Payroll Processing
Active
NTA 2025 Compliance
Enabled
Loan Auto-Deduction
Enabled
Payment Gateway
Paystack

Quick Actions

System Overview

This integrated system combines Salary Structure Management, Automated Payroll Processing, and Staff Loan Managementwith complete Nigerian statutory compliance. Features automatic loan deductions, tax calculations, and multi-payment gateway integration. Now updated for Nigeria Tax Act 2025.

Salary Structure

  • Basic salary + 10+ allowances
  • Multi-tier approval workflow
  • Historical tracking
  • Bulk updates & cloning

Payroll Processing

  • NTA 2025 tax calculations
  • Loan auto-deductions
  • Attendance integration
  • Rent Relief tracking

Loan Management

  • 5+ loan types (Salary advance, Staff, etc.)
  • Automatic payroll deduction
  • Guarantor system
  • Nigerian-style signature processing

Salary Structure Management

Components Breakdown

Basic Salary
Fixed

Foundation for all calculations

Allowances
10 Types

Housing, Transport, Meal, Utility, Medical, etc.

Bonuses & Rewards
Tax Configurable

Performance bonuses, 13th month, etc.

Approval Workflow

1

Draft Creation

By HR/Payroll Officer

2

Manager Review

Cross-verification required

3

Final Approval

HR Head or CEO

Important Notice

Salary structures automatically become active on the effective date. Previous structures are archived. All changes are audit-logged.

Payroll Processing

Monthly Processing Flow

1. Period Selection

Select month/year

2. Preview & Review

Check calculations

3. Approval

Manager sign-off

4. Payment

Fund disbursement

Earnings Calculation
  • Basic Salary100%
  • Allowances (Housing, Transport, etc.)As per structure
  • Overtime (1.5x rate)Automatic
  • Bonuses & ArrearsManual input
Deductions Calculation
  • PAYE Tax (NTA 2025)
    Auto-calculated
  • Pension (Employee 8%)
    Auto-calculated
  • Loan Repayments
    Auto-deducted
  • Absence/Lateness
    Attendance linked

Staff Loan Management

Loan Types

Salary Advance
Max:50% of salary
Tenure:1 month
Interest:0%
Emergency Loan
Max:100% of salary
Tenure:6 months
Interest:2%
Staff Loan
Max:300% of salary
Tenure:12 months
Interest:5%
Car Loan
Max:1200% of salary
Tenure:36 months
Interest:8%
Housing Loan
Max:3600% of salary
Tenure:60 months
Interest:10%
Application Process
1

Employee applies (self or HR-assisted)

Digital/physical signature options

2

Guarantor approval (if required)

2-3 colleagues must approve

3

Manager/HR approval

Separation of duties enforced

4

Automatic payroll deduction

Starts next payroll cycle

Key Features
  • Auto-deduction: Automatically deducted from salary
  • Guarantor system: Risk mitigation through colleagues
  • Nigerian compliance: SMS verification, witness signatures
  • Bulk processing: HR can apply loans for multiple staff
  • Separation of duties: Applicant ≠ Approver

Statutory Compliance (Nigeria)

Mandatory Contributions

ContributionRateWho PaysThresholdStatus
PAYE Tax (NTA 2025)
Progressive (0-25%)Employee₦800,000+ annually
Mandatory
Pension
Employee 8% + Employer 10%Both₦30,000+ monthly
Mandatory
NHF
2.5% of BasicEmployee₦3,000+ monthly
Mandatory
NHIS
5% (Configurable)BothOptional
Configurable
NSITF
1% of GrossEmployer5+ employees
Mandatory
ITF
1% of AnnualEmployerAll
Mandatory
For Small Companies
  • ✓ Hire below ₦30,000 threshold
  • ✓ Use contract staff (< 3 months)
  • ✓ Disable NHIS (optional scheme)
  • ✓ Register NSITF only if 5+ employees
  • ✓ ITF can be deferred
Non-Compliance Risks
  • ⚠️ PAYE: 10% penalty + interest
  • ⚠️ Pension: 2% monthly penalty
  • ⚠️ Director personal liability
  • ⚠️ Legal prosecution
  • ⚠️ Company blacklisting

Nigeria Tax Act 2025 Changes

Effective January 1, 2026

Major tax reforms affecting payroll calculations

New Tax Brackets

First ₦800,000
0% (Exempt)

Annual income up to ₦800,000 is tax-free

₦800,001 - ₦3M
15%

Lower bracket than previous 19%

Above ₦50M
25%

Reduced from 35% maximum rate

Rent Relief vs CRA

Old System (Abolished)

Consolidated Relief Allowance: ₦200,000 + 20% of gross income

New System (NTA 2025)

Rent Relief: 20% of annual rent paid (max ₦500,000)

Plus: Pension, NHF, NHIS, and Life Insurance deductions

Example: Employee earning ₦2M annually, rent ₦1.2M

  • • Rent Relief: ₦240,000 (20% of rent)
  • • Pension: ₦160,000 (8% of ₦2M)
  • • Total Relief: ₦400,000
Benefits for Employees
  • First ₦800,000 tax-free (up from ₦300,000)
  • Max rate reduced from 35% to 25%
  • Rent Relief recognizes actual housing costs
System Features
  • Automatic tracking of tax law version
  • Rent Relief calculator built-in
  • Backward compatibility for audit trails
Implementation Note

The system automatically applies NTA 2025 rules for payroll generated after January 1, 2026. Historical payrolls retain their original tax calculations for audit purposes. Employees can declare annual rent in their financial information for Rent Relief.

Payslips & Reports

Employee Access
Digital Payslips

PDF download, email delivery

NTA 2025 Tax Breakdown

Shows Rent Relief and tax brackets

Tax Certificate

Annual tax statement (NTA 2025 format)

Management Reports
Payroll Summary
Monthly

Department/company totals

NTA 2025 Tax Report
FIRS Ready

PAYE schedule with new brackets

Pension Schedule
PFA Ready

Employee/employer contributions

Payment Methods

Paystack

Automated bank transfers

Bulk payments
Instant reconciliation
Failed payment retry

Direct Bank

Manual bank transfers

Bank statement upload
Manual reconciliation
Cheque/cash support

Wallet System

Internal company wallet

Advance salary payment
Emergency disbursement
Balance tracking

System Configuration

Approval Workflow

Separation of Duties

ActionCan InitiateCan ApproveCross-Approval
Salary StructureHR/PayrollManager/CEO
Required
Payroll ProcessingPayroll OfficerHR/Finance
Required
Loan ApplicationEmployee/HRManager/HR
Required
NTA 2025 Tax FilingFinanceCEO
Required
Payment ProcessingFinanceFinance Head
Required
Security Rule

No single person can both initiate and approve any financial transaction. This prevents fraud and ensures accountability.

System Benefits

For Employees

  • NTA 2025 tax savings: First ₦800,000 tax-free
  • Transparent salary structure
  • Easy access to staff loans
  • Digital payslips anytime

For Employers

  • 70% faster payroll processing
  • Automatic NTA 2025 compliance
  • Reduced payroll errors
  • Complete audit trail
Cost Savings Analysis

Based on average Nigerian company data (NTA 2025 included)

₦2.1M/year

Average savings with NTA 2025

Frequently Asked Questions

Need help with payroll processing or NTA 2025 compliance?

Contact your payroll administrator or email support@machi-kunzult.com